CHANGING TRACKS

A CASH-STRAPPED RAILWAYS RESTRUCTURES ITS BOARD AND EYES PRIVATE CAPITAL TO REVIVE ITS FORTUNES. ITS TURNAROUND, THOUGH, WILL REQUIRE FAST-PACED AND CONTINUING REFORMS

- Anilesh S. Mahajan

On September 3, the Union government put into effect a historic decision taken last December towards the much-awaited corporatization of Indian Railways. The Appointments Committee of the Cabinet formally reconstituted the Railway Board, the 165-year-old organization’s apex decision-making body, appointing chairman Vinod Kumar Yadav as the board’s first CEO. The 114-year-old, eight-member board, which governs the public transporter, was replaced by a new one that has four members, with clearly defined roles of handling infrastructure, rolling stock, finance, and operations. They are led by CEO Yadav, who will be responsible for human resources. Unlike the chairman, who was a first among equals, the board’s CEO has powers to overrule members and take decisions should consensus elude any matter.